Executive Summary
Snam S.p.A., together with its subsidiaries, engages in the implementation and integrated management of natural gas infrastructure in Europe. More Details
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with acceptable track record.
Similar Companies
Share Price & News
How has Snam's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SRG is less volatile than 75% of Italian stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: SRG's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
-4.3%
SRG
-1.9%
IT Gas Utilities
-1.8%
IT Market
1 Year Return
-8.2%
SRG
-13.3%
IT Gas Utilities
-10.7%
IT Market
Return vs Industry: SRG exceeded the Italian Gas Utilities industry which returned -13.3% over the past year.
Return vs Market: SRG exceeded the Italian Market which returned -10.7% over the past year.
Shareholder returns
| SRG | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.3% | -1.9% | -1.8% |
| 30 Day | -0.6% | 3.8% | 0.5% |
| 90 Day | 3.4% | 8.3% | 14.3% |
| 1 Year | -3.2%-8.2% | -8.2%-13.3% | -7.9%-10.7% |
| 3 Year | 30.6%11.3% | 11.6%-4.1% | -4.9%-14.8% |
| 5 Year | 37.7%-14.4% | 35.4%-1.8% | 25.4%-3.0% |
Long-Term Price Volatility Vs. Market
How volatile is Snam's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
We Wouldn't Be Too Quick To Buy Snam S.p.A. (BIT:SRG) Before It Goes Ex-Dividend2 weeks ago | Simply Wall St
What Kind Of Shareholders Hold The Majority In Snam S.p.A.'s (BIT:SRG) Shares?4 weeks ago | Simply Wall St
Read This Before Buying Snam S.p.A. (BIT:SRG) For Its DividendValuation
Is Snam undervalued compared to its fair value and its price relative to the market?
13.43x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SRG (€4.41) is trading above our estimate of fair value (€3.15)
Significantly Below Fair Value: SRG is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SRG is poor value based on its PE Ratio (13.4x) compared to the XE Gas Utilities industry average (13.2x).
PE vs Market: SRG is good value based on its PE Ratio (13.4x) compared to the Italian market (20.4x).
Price to Earnings Growth Ratio
PEG Ratio: SRG is poor value based on its PEG Ratio (7x)
Price to Book Ratio
PB vs Industry: SRG is overvalued based on its PB Ratio (2.3x) compared to the XE Gas Utilities industry average (1.4x).
Next Steps
Future Growth
How is Snam forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
1.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SRG's forecast earnings growth (1.9% per year) is above the savings rate (1.9%).
Earnings vs Market: SRG's earnings (1.9% per year) are forecast to grow slower than the Italian market (21.7% per year).
High Growth Earnings: SRG's earnings are forecast to grow, but not significantly.
Revenue vs Market: SRG's revenue (4.1% per year) is forecast to grow faster than the Italian market (3.1% per year).
High Growth Revenue: SRG's revenue (4.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SRG's Return on Equity is forecast to be low in 3 years time (16.9%).
Next Steps
Past Performance
How has Snam performed over the past 5 years?
9.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SRG has high quality earnings.
Growing Profit Margin: SRG's current net profit margins (39.7%) are higher than last year (39.4%).
Past Earnings Growth Analysis
Earnings Trend: SRG's earnings have grown by 9.6% per year over the past 5 years.
Accelerating Growth: SRG's earnings growth over the past year (5.2%) is below its 5-year average (9.6% per year).
Earnings vs Industry: SRG earnings growth over the past year (5.2%) underperformed the Gas Utilities industry 9.8%.
Return on Equity
High ROE: SRG's Return on Equity (16.7%) is considered low.
Next Steps
Financial Health
How is Snam's financial position?
Financial Position Analysis
Short Term Liabilities: SRG's short term assets (€3.2B) do not cover its short term liabilities (€6.2B).
Long Term Liabilities: SRG's short term assets (€3.2B) do not cover its long term liabilities (€10.9B).
Debt to Equity History and Analysis
Debt Level: SRG's debt to equity ratio (244.9%) is considered high.
Reducing Debt: SRG's debt to equity ratio has increased from 189.8% to 244.9% over the past 5 years.
Debt Coverage: SRG's debt is not well covered by operating cash flow (10.5%).
Interest Coverage: SRG's interest payments on its debt are well covered by EBIT (12.2x coverage).
Balance Sheet
Next Steps
Dividend
What is Snam current dividend yield, its reliability and sustainability?
5.39%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SRG's dividend (5.39%) is higher than the bottom 25% of dividend payers in the Italian market (1.43%).
High Dividend: SRG's dividend (5.39%) is in the top 25% of dividend payers in the Italian market (4.53%)
Stability and Growth of Payments
Stable Dividend: SRG's dividend payments have been volatile in the past 10 years.
Growing Dividend: SRG's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (73.9%), SRG's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SRG's dividends in 3 years are forecast to be covered by earnings (80.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.2yrs
Average management tenure
CEO
Marco Alvera (45 yo)
4.75yrs
Tenure
Mr. Marco Alvera serves as the Chief Executive Officer of Snam S.p.A. He served as Chairman at Snam Rete Gas S.p.A. until November 2017. Mr. Alvera served as Chief Industrial Assets Officer at Snam S.p.A. ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 4.75yrs | no data | no data | |
| CFO, Chief International & Business Development Officer | 4.17yrs | no data | no data | |
| Executive Vice President of Hydrogen | 3yrs | no data | no data | |
| Head of Investor Relations | no data | no data | no data | |
| General Counsel of Legal | no data | no data | no data | |
| Executive VP of Institutional Affairs | 12yrs | no data | no data | |
| Executive Vice President of Human Resources | 3.83yrs | no data | no data | |
| Executive Vice President of Regulatory Affairs | 9.08yrs | no data | no data | |
| Chief Energy Transition Officer | 4.17yrs | no data | no data | |
| Head of Corporate Social Responsibility | no data | no data | no data | |
| Executive Vice President of Corporate Strategy & Investor Relations | 4.17yrs | no data | no data | |
| Senior Vice President of Internal Audit | 1yr | no data | no data |
4.2yrs
Average Tenure
49.5yo
Average Age
Experienced Management: SRG's management team is considered experienced (4.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 4.75yrs | no data | no data | |
| Chairman of Gnl Italia and Chief Executive Officer of Gnl Italia | no data | no data | no data | |
| Independent Director | 4.75yrs | €70.00k | no data | |
| Chairman of Stogit | no data | no data | no data | |
| Chairman of the Board | 0.58yr | no data | no data | |
| Non-Executive Director | 6yrs | €37.00k | no data | |
| Non-Executive Director | 4.75yrs | no data | no data | |
| Chairman of TEP Energy Solution | 2.42yrs | no data | no data | |
| Chairman of Statutory Auditors | 1.75yrs | no data | no data | |
| Independent Director | 1.75yrs | no data | no data | |
| Independent Director | 1.75yrs | no data | no data | |
| Independent Director | 1.75yrs | no data | no data |
2.1yrs
Average Tenure
55yo
Average Age
Experienced Board: SRG's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Snam S.p.A.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Snam S.p.A.
- Ticker: SRG
- Exchange: BIT
- Founded: 1941
- Industry: Gas Utilities
- Sector: Utilities
- Market Cap: €14.262b
- Shares outstanding: 3.24b
- Website: https://www.snam.it
Number of Employees
Location
- Snam S.p.A.
- Piazza Santa Barbara, 7
- San Donato Milanese
- Milan
- 20097
- Italy
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SNMR.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Dec 2001 |
| SRG | BIT (Borsa Italiana) | Yes | Ordinary Shares | IT | EUR | Dec 2001 |
| 0NQP | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | EUR | Dec 2001 |
| SNM | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Dec 2001 |
| SRGM | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | EUR | Dec 2001 |
| SRG | WBAG (Wiener Boerse AG) | Yes | Ordinary Shares | AT | EUR | Dec 2001 |
| SNMR.Y | OTCPK (Pink Sheets LLC) | UNSPONSORD ADR | US | USD | Oct 2008 |
Biography
Snam S.p.A., together with its subsidiaries, engages in the implementation and integrated management of natural gas infrastructure in Europe. It operates through Natural Gas Transportation, Liquefied Natur...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/20 18:40 |
| End of Day Share Price | 2021/01/20 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.